MGM101H5 Chapter Notes - Chapter 4: Limited Liability, Sole Proprietorship, General Partnership
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MGM101H5 Full Course Notes
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Document Summary
Sole proprietorship; business owned and operated by one person, without forming corporation: business and owner are single entity, advantages. Retention of company profit (keep all profits) No special taxes (taxed as personal income of owner) Unlimited liability; responsibility of business owners for all debts of business. Partnership; legal form of business with two or more parties. General partnership; all owners share in opening business and assume liability for business debts. Limited partnership; with one or more general partners and one or more limited partners. General partner; owner (partner) who has unlimited liability and is active in managing firm. Limited partner; owner who invests money in business but does not have management responsibility or liability for losses beyond investment: advantages. Corporation; legal entity with authority to act and have liability separate from owners. Public corporation; issues shares to public, listed on stock exchange. Private corporation; no shares in public, not listed on stock exchange, limited to 50 or.
